Real Estate tips: Housing price - More than what meets the eye
approach road etc. The onus is on the developer to construct it to make the project saleable. But he passes on the cost to buyers as facilities for their use. “Infrastructure cost has come into existence as municipal corporations are charging ‘development charges’ from the developer. However, it is insignificant considering the number of flats constructed in the same project. But some developers have now found a new avenue to make extra money,” says N Mehta, a Mumbai-based property consultant.
Car parking: Legally, the developer cannot sell open or stilt space for parking. However, charges for closed or podium parking has no upper limit. The standard range in a high rise project in metros ranges anywhere from Rs 7 lakh to Rs 20 lakh, and in some cases even touches Rs 40 lakh. This is a compulsory expense.
Clubhouse: Another mandatory cost. Almost all big projects have club houses. The burden is further divided into two segments: clubhouse construction and club membership charges, usually a one-time payment for life.
Society and connection: This includes society formation charges, share money, legal charges etc which leads to around Rs 2 lakh on an average. This is a statutory charge. However, several developers are charging extra for electricity and water connections and provision for piped gas.
Maintenance: Developers are charging maintenance fee for one to two years in advance, even before possession. The estimated maintenance cost for a high rise project in a metro city would range from Rs 10-20 per sq ft per month,
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